The FDIC, the Federal Reserve Board and the Office of the Comptroller of the Currency have jointly issued for public comment the attached proposed rule that would establish requirements for bank securities representatives (BSRs) who engage in the retail solicitation, recommendation,
purchase, or sale of certain securities. The proposed rule also specifies conditions for banks that employ BSRs. The agencies propose to adopt four forms based on the standardized forms used in the securities industry for broker-dealers and their registered representatives.

Requirements of the proposed rule are consistent with the professional qualification mandates for
broker-dealers and registered representatives. Bank employees must take and pass a proficiency
examination as a prerequisite to becoming a BSR and to engaging in retail activities related to
certain securities. Subsequently, BSRs will have continuing education requirements. Banks that
employ BSRs must file as sponsoring organizations with the National Association of Securities
Dealers, Inc. (NASD). It is anticipated that the NASD will receive bank and bank employee
filings and will use its central registration depository as a database for tracking banks and BSRs.